ECONOMICS ASSIGNMENT

Economics assignment

Economics assignment

A free market economy is an economic system that works on free price mechanism. Prices are determined by the demand and supply of a particular commodity or good this is in complete contrast with the socialist economy. The main features of market economy are stated briefly below.

1. Little or no government intervention.2. Private sector decides who will produce what and how.3. Freedom of movement of goods 4. Freedom of choice for producers and consumers5. Prices are determined by market forces

Free market economy is a hypothetical ideal situation and most of the free market economies follow this model ...